Memorandum Order No. 22




MALACAÑAN PALACE MANILA BY THE PRESIDENT OF THE PHILIPPINES [ Memorandum Order No. 22, July 26, 2001 ] APPROVING THE USE OF P155 MILLION (PLUS ACCRUED INTEREST) FROM THE SPECIAL FUND OF THE DEPARTMENT OF ENERGY FOR THE SECURITY AND PROTECTION OF THE CAMAGO-MALAMPAYA NATURAL GAS PROJECT AND THE IMPLEMENTATION OF THE ELECTRIC POWER INDUSTRY REFORM ACT OF 2001 WHEREAS, pursuant to Section 8 of Presidential Decree No. 910 dated March 22, 1976, as amended, a Special Fund was created to finance energy resource development and exploitation programs and projects of the Government and such other purposes as may be directed by the President; WHEREAS, in a Memorandum of Agreement dated May 31, 1995, the Department of Energy transferred an amount of P178 million from the Special Fund to the Department of National Defense to fund the construction of benchmarks and lighthouses in the Kalayaan Islands Group; WHEREAS, the said amount of P178 million was reduced to P155 million when the amount of P23 million was remitted to the National Mapping and Resource Information Authority to fund the acquisition of Satellite Imagery of the Kalayaan Islands Group, Hydrographic/Geophysical and Geotechnical Boring at the Nares Bank, Marie Louise and Baybayin Dagat Shoal (Kalayaan Islands Group), production of nautical maps, charting and mapping of said area; WHEREAS, the proposed construction of lighthouses was suspended in the light of the Department of Foreign Affairs Guidelines for the Philippine Actions on the South China Sea resulting from the RP-PROC Bilateral Talks in Manila on August 9 to 10, 1997; WHEREAS, under the terms of a Memorandum of Agreement dated July 17, 2001, the Department of Energy and the Department of National Defense have agreed to use the remaining P155 million (plus accrued interest) for the security and protection of the Camago-Malampaya Natural Gas Project and the implementation of the Electric Power Industry Reform Act of 2001; WHEREAS, said Memorandum of Agreement dated July 17, 2001, was found to be in accordance with existing budgetary rules and regulations by the Department of Budget and Management as stated in its letter dated July 19, 2001. NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by virtue of the powers vested in me by law and upon the recommendation of the Secretary of Energy and the Secretary of National Defense, hereby approve the use of P155 million (plus accrued interest) from the Special Fund created under Section 8 of Presidential Decree No. 910, as amended, for the protection and security of the Camago-Malampaya Natural Gas Project and the implementation of the Electric Power Industry Reform Act of 2001, in accordance with the Memorandum of Agreement executed by and between the Department of Energy and the Department of National Defense on July 17, 2001, hereto attached as Annex “A”, subject to the pertinent accounting and auditing rules rind regulations of the Commission on Audit and applicable laws.1aшphi1 City of Manila, July 26, 2001. (Sgd.) GLORIA MACAPAGAL-ARROYO By the President: (Sgd.) ALBERTO G. ROMULO Executive Secretary The Lawphil Project - Arellano Law Foundation